CHICAGO — The financially strapped Chicago Public Schools released a $5.2 billion proposed budget for fiscal 2013 that closes a $665 million gap with a property tax hike, operating cuts, and by digging deeply into reserves and draining its unreserved fund balance.

The spending plan includes a $4.7 billion operating budget, a scaled-down $110 million capital budget, and funds for debt service. CPS is planning on issuing $500 million of new-money debt and possibly about $100 million in refunding bonds.

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